Impact of Knowledge Economy on Economic Growth in Rwanda: An Empirical Study during the Period (2000-2019)

Abstract

PurposeThis study aims to analyze the effect of the knowledge economy on economic growth in Rwanda, using time series data over 2000-2019. Design/methodology/approach We used the Auto Regressive DistributedLagged (ARDL) bound testing approach to estimate the relationship between knowledge economy and economic growth in Rwanda in the short and long run. FindingsThe results show that Knowledge-Economy indicators have a significant long-run relationship with the economic growth in Rwanda. Originality/value – Actions for increasing spending on research and development with the expansion of databases and information centers within government agencies are very essential for Rwanda to increase the economic growth and competitiveness in the global markets.